My Airport had been configured as "bridged" instead of "nat". The the DSL modem supplies its own DHCP addresses, this caused a "double nat" error message. I am not sure why this setting was causing the problem, since it had been working for quite some time. With the consultation of Apple support we did a factory reset of the Apple TV (wiping out the content on the Apple TV, which resulted in almost a 24 hour reload), and reset the Airport to "bridged". A reboot of the MacPro also was necessary as iTunes was not seeing the AppleTV as a device. After the reboot it showed up in iTunes, the code could be entered, and the synch started.